$ENPH call prices skyrocket 15-fold

Bullish option traders are racking up stratospheric gains in Enphase Energy (ENPH) today.

On Feb. 6, Market Rebellion’s Unusual Activity Service identified the purchase of 3,500 February $45 calls for $0.75 to $0.85 with shares at $37.11. Open interest in the strike was only 493 contracts before that session began, showing that this was fresh buying.

Those calls have traded for as much as $12.20 so far today, more than 15 times their average purchase price. The stock surged 53.95% in the same time frame, a huge move but still nowhere near that of its options on a relative basis.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

ENPH is up 36.62% to $54.88 this morning. The solar-technology company topped quarterly estimates before the market opened today.